The lok Sabha on Wednesday passed amendments to taxation laws to provide tax incentives in certain commercial sectors. The Bill mainly intends to provide tax incentives to the garment sector and enable the Government to raise customs duty on marble and granite from 10 to 40 per cent. Introducing the Bill, Finance Minister Arun Jailtey said these measures would help in creating jobs and protect domestic industry from import surge.
The Taxation laws (Amendment) Bill, 2016, also seeks to expand the definition of “demerger” with a view to facilitate the splitting or reconstruction of erstwhile public sector companies. The changes in the Income Tax Act will give effect to the conditions attached to the transfer of shares by the Government, Jaitley said, adding it would enable the Centre to make use of land belonging to the erstwhile VSNl which has remained with the Government following privatisation of the telecom PSU 14 years ago.
The taxation amendment bill, which provides for three changes, was passed by the lok Sabha by voice vote after a short debate. As regards the garment sector, the Bill eases the condition for availing tax incentives under Section 80JJAA of the Income Tax Act, 1961.